Sharper Analysis Essential to Predict Cost of Major Systems

February 19, 2012

Overspending on technology programs has long been a problem, and the government is being forced by the budget environment to address it. This is especially true for major weapons systems.

The Pentagon's challenge is to be smarter about how it maintains readiness even as budgets stagnate.

One way to do this is through the use of advanced predictive analysis technologies. For too long, program managers, Defense Department executives and the defense contracting community — as well as Congress — have relied on misinformed assumptions about the life-cycle demands on weapons systems and the need for investments in spare parts, resets and replacements. The result has been numerous instances of over-cost and over-schedule programs.

We have to be more accurate in our predictions about asset life-cycle demands, more honest about our assumptions regarding those demands and more aggressive in driving out unnecessary costs — all without sacrificing battlefield readiness. 

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